Goods and Services
Learn
Every day, people buy and use different things. Some of these things you can touch and hold. Others are things people do for you. Let's learn about goods and services!
What are Goods?
Goods are things you can touch, hold, and keep. Goods are made or grown by people. Examples include toys, food, clothes, books, and cars. You can buy goods at stores.
What are Services?
Services are things people DO for you. You cannot touch or hold a service, but it helps you in some way. Examples include a haircut, a doctor's checkup, or a teacher's lesson.
The Easy Way to Remember
Goods = Things (you can put them in a box)
Services = Actions (someone does something for you)
Examples of Goods
- Food (apples, bread, milk)
- Clothes (shirts, shoes, hats)
- Toys (dolls, cars, games)
- Books and school supplies
- Furniture (chairs, tables, beds)
- Electronics (computers, phones, TVs)
Examples of Services
- A doctor checking your health
- A teacher helping you learn
- A barber cutting your hair
- A firefighter putting out fires
- A bus driver taking you somewhere
- A dentist cleaning your teeth
Why Goods and Services Matter
People need both goods and services to live. We need goods like food and clothes. We also need services like doctors and teachers. People work to make goods or provide services, and they earn money for their work.
Examples
Let's practice identifying goods and services.
Example 1: Is a Pizza a Good or Service?
Think: Can you touch and hold a pizza? Yes!
Think: Can you eat it later? Yes!
Answer: Pizza is a good because it is something you can touch and keep.
Example 2: Is a Haircut a Good or Service?
Think: Can you touch and hold a haircut? No - a haircut is not a thing.
Think: Is someone doing something for you? Yes, the barber is cutting your hair.
Answer: A haircut is a service because someone is doing something for you.
Example 3: At a Restaurant
Question: At a restaurant, what is the good and what is the service?
Think: What can you touch? The food. Who is doing something for you? The waiter.
Answer: The food is a good. The waiter serving you is a service.
Example 4: A New Bicycle
Question: You get a new bicycle for your birthday. Is this a good or a service?
Think: Can you touch it? Ride it? Keep it in your garage?
Answer: A bicycle is a good because it is a thing you can touch and own.
Example 5: Your Teacher
Question: Your teacher helps you learn to read. Is this a good or service?
Think: Is teaching something you can hold? No. Is the teacher doing something helpful for you? Yes!
Answer: Teaching is a service because the teacher is doing something to help you.
Practice
Decide if each item is a good or a service.
1. A new backpack. Good or service?
Show Answer
Good. A backpack is something you can touch and carry.
2. A doctor's checkup. Good or service?
Show Answer
Service. The doctor is doing something to help you stay healthy.
3. A carton of milk. Good or service?
Show Answer
Good. Milk is something you can touch and drink.
4. A bus ride to school. Good or service?
Show Answer
Service. The bus driver is doing something for you (driving you).
5. A pair of shoes. Good or service?
Show Answer
Good. Shoes are things you can touch and wear.
6. A plumber fixing a sink. Good or service?
Show Answer
Service. The plumber is doing work to help you.
7. A video game. Good or service?
Show Answer
Good. A video game is something you can buy and keep.
8. A librarian helping you find a book. Good or service?
Show Answer
Service. The librarian is doing something to help you.
9. Name two goods you used today.
Show Answer
Possible answers: food, clothes, pencil, paper, book, toothbrush, soap, backpack.
10. Name two services your family uses.
Show Answer
Possible answers: doctor, dentist, teacher, mail carrier, bus driver, barber/hairdresser.
Check Your Understanding
Question 1: What is the main difference between goods and services?
Show Answer
Goods are things you can touch and keep. Services are actions - things people do for you.
Question 2: Give an example of a place where you can get both goods and services.
Show Answer
A restaurant! The food is a good, and the waiter serving you is a service. (Other answers: a grocery store has goods and cashiers provide service; a salon sells hair products (goods) and gives haircuts (services).)
Question 3: Why do people pay for services?
Show Answer
People pay for services because someone is using their time and skills to help them. The person providing the service has learned how to do something useful, and they earn money for their work.
Question 4: Is a book from the library a good or a service?
Show Answer
The book itself is a good (you can touch and read it). The librarian helping you is a service.
Next Steps
- Look around: Find 5 goods in your classroom or home. Write them down!
- Think about helpers: Who provides services in your community? Make a list of community helpers and the services they provide.
- Keep learning: In the next lesson, you will learn about Producers and Consumers - the people who make goods and the people who buy them.